(BWA) BorgWarner - Overview
Sector: Consumer Cyclical | Industry: Auto Parts | Exchange: NYSE (USA) | Market Cap: 12.680m USD | Total Return: 98.7% in 12m
Avg Turnover: 200M
EPS Trend: -35.3%
Qual. Beats: 0
Rev. Trend: 45.5%
Qual. Beats: 0
Warnings
Fakeout
Tailwinds
Rs(ibd) Leader, Idiosyncratic Leader, Tailwind
BorgWarner Inc. (BWA) is a Tier 1 automotive supplier specializing in propulsion systems for combustion, hybrid, and electric vehicles. The company operates across four primary segments: Turbos & Thermal Technologies, Drivetrain & Morse Systems, PowerDrive Systems, and Battery & Charging Systems. Its extensive product catalog includes turbochargers, power electronics, battery packs, and integrated drive modules.
The company is currently executing a strategic transition toward electrification to align with global regulatory shifts and OEM demand for zero-emission drivetrains. In the automotive parts sector, suppliers often face high capital expenditure requirements to maintain engineering leadership across multiple propulsion architectures simultaneously. Founded in 1928, the Michigan-based firm maintains a global manufacturing footprint to serve major vehicle manufacturers worldwide.
Reviewing historical performance metrics on ValueRay can provide deeper context on the companys valuation. This business model relies on long-term contracts and deep integration into the design cycles of global automotive platforms.
- Accelerated electric vehicle propulsion adoption drives long-term revenue growth and margin expansion
- Global automotive production volumes dictate cyclical demand for combustion and hybrid components
- Transition from internal combustion to electrification increases capital expenditure and R&D requirements
- Fluctuating raw material costs and supply chain disruptions impact operational profitability margins
| Net Income: 362.0m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.11 > 0.02 and ΔFCF/TA 3.66 > 1.0 |
| NWC/Revenue: 24.95% < 20% (prev 22.49%; Δ 2.47% < -1%) |
| CFO/TA 0.13 > 3% & CFO 1.72b > Net Income 362.0m |
| Net Debt (2.15b) to EBITDA (2.04b): 1.06 < 3 |
| Current Ratio: 2.13 > 1.5 & < 3 |
| Outstanding Shares: last quarter (208.3m) vs 12m ago -4.49% < -2% |
| Gross Margin: 18.91% > 18% (prev 0.19%; Δ 1.87k% > 0.5%) |
| Asset Turnover: 104.3% > 50% (prev 101.3%; Δ 3.06% > 0%) |
| Interest Coverage Ratio: 14.17 > 6 (EBITDA TTM 2.04b / Interest Expense TTM 94.0m) |
| A: 0.26 (Total Current Assets 6.74b - Total Current Liabilities 3.17b) / Total Assets 13.7b |
| B: 0.50 (Retained Earnings 6.78b / Total Assets 13.7b) |
| C: 0.10 (EBIT TTM 1.33b / Avg Total Assets 13.7b) |
| D: 0.75 (Book Value of Equity 5.98b / Total Liabilities 8.01b) |
| Altman-Z'' = 4.77 = AA |
| DSRI: 0.96 (Receivables 3.10b/3.16b, Revenue 14.3b/14.0b) |
| GMI: 0.99 (GM 18.91% / 18.77%) |
| AQI: 0.94 (AQ_t 0.25 / AQ_t-1 0.27) |
| SGI: 1.02 (Revenue 14.3b / 14.0b) |
| TATA: -0.10 (NI 362.0m - CFO 1.72b) / TA 13.7b) |
| Beneish M = -3.18 (Cap -4..+1) = AA |
As of May 25, 2026, the stock is trading at USD 65.82 with a total of 4,191,994 shares traded.
Over the past week, the price has changed by +4.13%,
over one month by +16.93%,
over three months by +12.17% and
over the past year by +98.70%.
BorgWarner has received a consensus analysts rating of 4.11. Therefore, it is recommended to buy BWA.
- StrongBuy: 7
- Buy: 6
- Hold: 5
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 68.1 | 3.4% |
P/E Trailing = 35.9419
P/E Forward = 15.6495
P/S = 0.8846
P/B = 2.3664
P/EG = 0.5395
Revenue TTM = 14.3b USD
EBIT TTM = 1.33b USD
EBITDA TTM = 2.04b USD
Long Term Debt = 3.88b USD (from longTermDebt, last quarter)
Short Term Debt = 42.0m USD (from shortTermDebt, last quarter)
Debt = 4.26b USD (from shortLongTermDebtTotal, last quarter) + Leases 192.0m
Net Debt = 2.15b USD (calculated: Debt 4.26b - CCE 2.11b)
Enterprise Value = 14.8b USD (12.7b + Debt 4.26b - CCE 2.11b)
Interest Coverage Ratio = 14.17 (Ebit TTM 1.33b / Interest Expense TTM 94.0m)
EV/FCF = 10.23x (Enterprise Value 14.8b / FCF TTM 1.45b)
FCF Yield = 9.77% (FCF TTM 1.45b / Enterprise Value 14.8b)
FCF Margin = 10.12% (FCF TTM 1.45b / Revenue TTM 14.3b)
Net Margin = 2.53% (Net Income TTM 362.0m / Revenue TTM 14.3b)
Gross Margin = 18.91% ((Revenue TTM 14.3b - Cost of Revenue TTM 11.6b) / Revenue TTM)
Gross Margin QoQ = 19.16% (prev 20.40%)
Tobins Q-Ratio = 1.09 (Enterprise Value 14.8b / Total Assets 13.7b)
Interest Expense / Debt = 2.20% (Interest Expense 94.0m / Debt 4.26b)
Taxrate = 22.26% (73.0m / 328.0m)
NOPAT = 1.04b (EBIT 1.33b * (1 - 22.26%))
Current Ratio = 2.13 (Total Current Assets 6.74b / Total Current Liabilities 3.17b)
Debt / Equity = 0.78 (Debt 4.26b / totalStockholderEquity, last quarter 5.48b)
Debt / EBITDA = 1.06 (Net Debt 2.15b / EBITDA 2.04b)
Debt / FCF = 1.49 (Net Debt 2.15b / FCF TTM 1.45b)
Total Stockholder Equity = 5.71b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.63% (Net Income 362.0m / Total Assets 13.7b)
RoE = 6.34% (Net Income TTM 362.0m / Total Stockholder Equity 5.71b)
RoCE = 13.90% (EBIT 1.33b / Capital Employed (Equity 5.71b + L.T.Debt 3.88b))
RoIC = 9.87% (NOPAT 1.04b / Invested Capital 10.5b)
WACC = 7.87% (E(12.7b)/V(16.9b) * Re(9.94%) + D(4.26b)/V(16.9b) * Rd(2.20%) * (1-Tc(0.22)))
Discount Rate = 9.94% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -98.88 | Cagr: -4.97%
[DCF] Terminal Value 77.97% ; FCFF base≈1.25b ; Y1≈1.44b ; Y5≈2.12b
[DCF] Fair Price = 144.8 (EV 31.9b - Net Debt 2.15b = Equity 29.7b / Shares 205.1m; r=8.35% [WACC [floored]]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: -35.33 | EPS CAGR: -18.76% | SUE: 0.07 | # QB: 0
Revenue Correlation: 45.49 | Revenue CAGR: 0.80% | SUE: 0.44 | # QB: 0
EPS current Quarter (2026-06-30): EPS=1.27 | Chg30d=-1.28% | Revisions=-33% | Analysts=14
EPS next Quarter (2026-09-30): EPS=1.31 | Chg30d=+0.03% | Revisions=-14% | Analysts=14
EPS current Year (2026-12-31): EPS=5.20 | Chg30d=+0.55% | Revisions=+12% | GrowthEPS=+5.9% | GrowthRev=-0.7%
EPS next Year (2027-12-31): EPS=5.86 | Chg30d=+0.45% | Revisions=+0% | GrowthEPS=+12.6% | GrowthRev=+4.8%
[Analyst] Revisions Ratio: -33%